FirstService (NASDAQ:FSV) Announces Quarterly Earnings Results, Beats Estimates By $0.05 EPS

FirstService (NASDAQ:FSV) (TSE:FSV) released its quarterly earnings data on Thursday. The financial services provider reported $1.89 earnings per share for the quarter, beating the consensus estimate of $1.84 by $0.05, Briefing.com reports. The firm had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.48 billion. FirstService had a return on equity of 18.07% and a net margin of 2.88%. FirstService’s quarterly revenue was up 5.8% on a year-over-year basis. During the same period last year, the business posted $1.76 EPS.

Here are the key takeaways from FirstService’s conference call:

• FirstService delivered solid Q3 results, with revenue up 6% to $1.53 billion, organic growth of 4%, adjusted EBITDA up 3%, and adjusted EPS up 7% to $1.89. Management expects similar mid-single-digit consolidated revenue growth in Q4 and mid-single-digit growth for the full year.
• FirstService Residential continued to improve profitability, with Q3 EBITDA margin expanding 30 basis points to 11.3% and eight consecutive quarters of margin improvement. Management expects more significant margin expansion in Q4, aided by labor efficiencies and the exit from the loss-making non-core aquatics operation.
• Roofing remains the largest pressure point: Q3 revenue fell 4% reported and at a high-single-digit organic rate, while competitive pricing and lower volumes compressed margins. Although backlog improved sequentially, management expects continued margin pressure in Q4 and only flat to slightly declining organic growth, particularly due to difficult Florida conditions.
• Restoration revenue increased 10% in Q3, supported by activity in Canada and Hawaii, mitigation work, and newly won large-loss projects; management expects mid- to high-single-digit growth in Q4. The recent Hurricane Isaias generated some work but is expected to have an immaterial impact on results.
• The company repurchased 2.2 million shares for more than $300 million in Q3, bringing year-to-date buybacks to 9% of shares outstanding, but net leverage rose to 2.4x from 1.8x due to the repurchases. Management intends to make future buybacks more judicious and generally align them with free cash flow, acquisition opportunities, and valuation.

FirstService Stock Performance

FirstService stock opened at $145.43 on Friday. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.63 and a current ratio of 1.63. The company has a market capitalization of $6.35 billion, a price-to-earnings ratio of 41.57, a PEG ratio of 3.02 and a beta of 0.95. FirstService has a fifty-two week low of $119.41 and a fifty-two week high of $171.88. The stock has a fifty day moving average of $135.69 and a two-hundred day moving average of $138.74.

FirstService Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 7th. Shareholders of record on Wednesday, September 30th were given a dividend of $0.3050 per share. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $1.22 annualized dividend and a yield of 0.8%. FirstService’s dividend payout ratio (DPR) is presently 34.56%.

FirstService News Roundup

Here are the key news stories impacting FirstService this week:

• Positive Sentiment: Scotiabank raised its price target for FirstService from $170 to $175 and assigned a “sector outperform” rating, implying approximately 19% upside from the referenced price. Scotiabank FirstService price target
• Positive Sentiment: Third-quarter revenue increased 5.8% year over year to $1.53 billion, while adjusted EPS rose to $1.89 from $1.76 and exceeded the $1.84 consensus estimate. Adjusted EBITDA also improved to $169.7 million from $164.8 million. FirstService Reports Third Quarter 2026 Results
• Positive Sentiment: Management characterized growth as balanced across both divisions, suggesting continued demand for FirstService’s property-management and real-estate services. FirstService Q3 earnings call highlights

Analyst Ratings Changes

Several analysts have weighed in on the company. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $144.00 target price on shares of FirstService in a report on Friday, July 24th. Canadian Imperial Bank of Commerce set a $170.00 price target on FirstService in a research note on Thursday, October 15th. Raymond James Financial reiterated an “outperform” rating on shares of FirstService in a research report on Friday. Scotiabank boosted their price objective on shares of FirstService from $170.00 to $175.00 and gave the stock a “sector outperform” rating in a research report on Friday. Finally, TD Securities reissued a “buy” rating and issued a $195.00 price objective on shares of FirstService in a research note on Friday, July 24th. Eight research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $184.20.

FirstService Company Profile

FirstService Corporation is a Canadian provider of property management and property services serving customers primarily in the United States and Canada. The company operates through two main businesses: FirstService Residential and FirstService Brands.

FirstService Residential provides property management services for condominium and homeowners’ associations, cooperatives, and other residential communities. Its services include community administration, financial management, maintenance coordination, customer support, and related operational services.

FirstService Brands operates and supports a network of property-service businesses, including companies involved in property restoration, painting, flooring, window treatments, and other residential and commercial services.